🦠COVID-19 crisis tax measures

Companies whose activity was temporarily suspended by the Decree 195/2020 for establishing the emergency status. Restaurants, bars, large commercial centers are no longer allowed to function - a full list in the Military Order nr. 1/2020, extended through Military Order nr. 2/2020, which includes dental offices and shopping malls:

• According to the Labour Code (Law 53/2003, article 52, paragraph 1, letter c), these companies receive from the Unemployment Fund 75% from the gross salary, for the employees who stop working at the initiative of the employer. Limited to a value of the salary of 5 429 lei.

  • • In order to obtain this money, the employer has to file the following documents:

      • • A request, template in Annex 1 of OUG 30/2020

        • Emergency Status Certificate issued by the Ministry of Economy. Details here

        • List of persons that will benefit from the subsidy: name, first name, gender, education level, residence, urban/rural, district/county, gross salary, value of subsidy

    • ⚠️ Only after paying the salaries and the taxes will I be able to receive this subsidy for my business in Romania.

Example

• I have a shop manager that I pay with a gross salary of 13 877 lei.

  • • I will receive from the Unemployment Fund 75% of 5 429 lei, that is 4 072 lei. Of these 4 072 lei, I pay the employee with 2 382 lei and I offer 1 690 lei to the state budget.

    • But, for my Business in Romania, the cost is actually higher: the employee will enter technical unemployment with 75% of 13 877 lei, that is 10 408 lei, which is composed of 4 319 lei to the state budget and 6 089 lei net salary. In other words, my Business in Romania will have to cover another 6 336 lei: 3 707 lei to the employee and 2 629 lei to the state budget.

    • ⚠️Businesses which pay salaries higher than 5 429 lei will have to do efforts to cover for the difference. Businesses which pay salaries lower or equal to 4 072 lei will have an advantage, because the Unemployment Fund will takeover all the salary expense.

• • • These companies will be able to offer 75% technical unemployment

    • Limited to a value of the salary of 5 429 lei

    • ⚠️Very important: the beneficiaries will only be the employees which have active individual labour contracts on the date of entry into force of OUG 30/2020, that is Saturday, 21 March 2020, when it was published in the Official Gazette (=ro. Monitorul Oficial)

    • Documents I need to file:

      • • Request for subsidy

        • Statement on my own responsibility that my Business in Romania has recorded a decrease of cash received (=ro. încasări) in the month before filing the statement with at least 25% compared to the average cash received in January-February 2020

          • • ⚠️So we are speaking about cash received, not income. Therefore, if I have invoices with maturities in 90 or 120 days and I am being paid for them in March, then in March I will have cash receipts higher than the January-February average - and I won't be able to benefit from this subsidy.

    • Condition: in order to benefit from this facility, the company must be missing the financial capacity to pay its employees by itself. The existence of cash and cash equivalents in accounts, in savings, petty cash, represents a criterion for this facility to be denied.

    • The deadline to declare and pay remains the 25 of the month following the month in which the payment from the budget of the unemployment insurance fund is made.